PC-based store coming this fall

Automated shop like sophisticated vending machine

The Retreat at Lake Tamaha will become home to Alabama’s first fully automated convenience store this fall. Shop24 Global LLC convenience stores operate similar to a vending machine.

Submitted photo

By Ashley ChaffinStaff Writer

Published: Saturday, July 20, 2013 at 3:30 a.m.

Last Modified: Friday, July 19, 2013 at 11:35 p.m.

The Retreat at Lake Tamaha will become home to Alabama’s first fully automated convenience store early in the fall semester.

Shop24 Global LLC convenience stores operate similar to a vending machine, but they offer everything from a small bag of chips to a half-gallon of milk. The stores offer up to 180 items that range in weight from an ounce to 8 pounds.

“We are PC-based,” said Jason Santoro, vice president of sales for Shop24. “Meaning there is a computer inside the store, so that’s what separates us from a vending machine. That technology allows us to take all payment options — cash, credit cards, debit cards and university meal plan cards.”

The computer, along with the store’s seven cameras, allows the store to be self-automated. An on-site operator takes care of refilling the machine and ensuring products are not past their expiration dates.

“Our stores are online. We’re constantly ‘pinging’ them,” Santoro said. “The stores self-diagnose any issues. If there is a jam or the temperature goes above 38 degrees, it will send an alert to our operator in Columbus, Ohio. ... There is a robot inside the store that fetches the products. We can control that robot remotely from Columbus, Ohio, so we can fix the majority of those issues remotely.”

Every Shop24 store is tailored to the customers who will utilize the machine, Santoro said. The Retreat’s Shop24 will be stocked with items that have been popular at other collegiate locations around the country.

“We cater to our audience,” Santoro said. “So what we’ve learned in higher ed is that students are buying meal options late at night — you’re seeing fresh-made sandwiches, frozen entrees, frozen pizzas and calzones are all very popular. Beverages are also popular, but it’s primarily food.”

He said Shop24 has a long way to go in deciding exact products and pricing for The Retreat, which they base on prices at convenience stores in the area. They company is also working with the University of Alabama to allow the machine to take Bama Cash from Alabama student Action Cards.

Landmark Properties Inc., which owns The Retreat and similar student-living communities around the country, will be the first private student housing community to install a Shop24.

“We always aim to provide the best possible living environment, and that includes the amenities, to any of our projects,” said James Whitley, vice president and COO of Landmark Properties. “We felt like this would be a very attractive amenity and convenience for the residents living in The Retreat.”

Santoro said Landmark Properties is preparing the area for the Shop24 to stand on, but they are providing the machine at no cost to them. Shop24 will give the company a percentage of the sales as a way of renting the area the machine stands on. He said one attractive thing about The Retreat was how remote it is.

“They have a high population, a strong summer population and it’s a very remote area,” Santoro said. “There are not convenience stores within a good seven- to 10-minute drive, and there were not convenience stores on the way to campus. That’s one way we evaluate locations. Cars can create competition, but in this particular case there really weren’t any options.”

<p>The Retreat at Lake Tamaha will become home to Alabama's first fully automated convenience store early in the fall semester.</p><p>Shop24 Global LLC convenience stores operate similar to a vending machine, but they offer everything from a small bag of chips to a half-gallon of milk. The stores offer up to 180 items that range in weight from an ounce to 8 pounds.</p><p>“We are PC-based,” said Jason Santoro, vice president of sales for Shop24. “Meaning there is a computer inside the store, so that's what separates us from a vending machine. That technology allows us to take all payment options — cash, credit cards, debit cards and university meal plan cards.” </p><p>The computer, along with the store's seven cameras, allows the store to be self-automated. An on-site operator takes care of refilling the machine and ensuring products are not past their expiration dates. </p><p>“Our stores are online. We're constantly 'pinging' them,” Santoro said. “The stores self-diagnose any issues. If there is a jam or the temperature goes above 38 degrees, it will send an alert to our operator in Columbus, Ohio. ... There is a robot inside the store that fetches the products. We can control that robot remotely from Columbus, Ohio, so we can fix the majority of those issues remotely.”</p><p>Every Shop24 store is tailored to the customers who will utilize the machine, Santoro said. The Retreat's Shop24 will be stocked with items that have been popular at other collegiate locations around the country.</p><p>“We cater to our audience,” Santoro said. “So what we've learned in higher ed is that students are buying meal options late at night — you're seeing fresh-made sandwiches, frozen entrees, frozen pizzas and calzones are all very popular. Beverages are also popular, but it's primarily food.”</p><p>He said Shop24 has a long way to go in deciding exact products and pricing for The Retreat, which they base on prices at convenience stores in the area. They company is also working with the University of Alabama to allow the machine to take Bama Cash from Alabama student Action Cards. </p><p>Landmark Properties Inc., which owns The Retreat and similar student-living communities around the country, will be the first private student housing community to install a Shop24. </p><p>“We always aim to provide the best possible living environment, and that includes the amenities, to any of our projects,” said James Whitley, vice president and COO of Landmark Properties. “We felt like this would be a very attractive amenity and convenience for the residents living in The Retreat.”</p><p>Santoro said Landmark Properties is preparing the area for the Shop24 to stand on, but they are providing the machine at no cost to them. Shop24 will give the company a percentage of the sales as a way of renting the area the machine stands on. He said one attractive thing about The Retreat was how remote it is.</p><p>“They have a high population, a strong summer population and it's a very remote area,” Santoro said. “There are not convenience stores within a good seven- to 10-minute drive, and there were not convenience stores on the way to campus. That's one way we evaluate locations. Cars can create competition, but in this particular case there really weren't any options.”</p><p>Reach Ashley Chaffin at ashley.chaffin@tuscaloosanews.com or 205-722-0230.</p>